TASI jumped 9% to touch 2-year high in Q1 2018

Saudi Arabia’s Tadawul All Share Index (TASI) rose 9 percent, or 645 points, to close at 7,871 – its highest level since Q2 2015, when it ended at 9,087 points.

The benchmark’s first-quarter gains are the highest since Q4 2016, data compiled by Argaam showed.

The strong performance was backed by several key events, mainly Saudi Arabia’s upgrade to the secondary emerging market status by FTSE Russell. The equity market neared the 8,000 mark on Mar. 25, ahead of the global index compiler’s decision.

The index was also lifted by Q4 2017 earnings, the Capital Market Authority’s (CMA) decision on applying the new price limit validation on incoming orders, adoption of the updated Independent Custody Model (ICM) and allowing asset managers to aggregate orders.

King Salman’s royal decrees on ordering payment a monthly cost of living allowance at SAR 1,000 for the government staff and military personnel for one year also bolstered TASI’s gains during the same period.  

On monthly performance level, the Saudi index jumped 6 percent in January and March each, but closed February 3 percent lower.

Thirteen market sectors ended Q1 on an up note, led by the Media which climbed 25 percent. Food & Beverage came second, rising 17 percent, followed by Banks and Materials with gains of 13 percent and 12 percent, respectively. 

Real Estate Management and Development and REITs were the worst-performing sectors, falling 10 percent each.

The market turnover declined 6 percent year-on-year (YoY) to SAR 237.3 billion during the first quarter.

During Q1, TASI hit its highest level at 7,986 points on Mar. 25, and its lowest level on Jan. 3 at 7,149 points.

The gauge recorded its highest daily rise of 134 points on Mar. 11, and the biggest daily drop of 121 points on Feb. 6.

The benchmark's highest daily trading value came on Mar. 12 at SAR 5.92 billion, while the lowest daily trading value was on Feb. 14 at SAR 2.64 billion.

 Stocks saw mixed performance in Q1 2018, with 89 companies ending higher.

Saudi Industrial Export Co. was the best performer in Q1, surging 80 percent, followed by Rabigh Refining and Petrochemical Co. (Petro Rabigh) which climbed 51 percent.

Etihad Atheeb Telecommunication Co. (GO) was the biggest loser for the same period, diving 37 percent. It was followed by MetLife AIG ANB Cooperative Insurance, which dipped 23 percent. 

*Capital cut during the period.

Among the top companies, market heavyweights Al Rajhi Bank and Saudi Basic Industries Corporation (SABIC), added 17 percent and 14 percent, respectively.

The National Commercial Bank (NCB) gained 18 percent. Saudi Kayan Petrochemical was the top riser, with a gain of 28 percent.

Meanwhile, Jabal Omar Development dropped the most by 15 percent, followed by Dar Alarkan Real Estate Development (13 percent) and state-run Saudi Electricity Co. (1 percent).

As many as 12 stocks closed Q1 2018 below their par value - SAR 10 - dragged by GO at SAR 6.13, and Zain Saudi at SAR 7.17.

 * Capital cut during the period.

All REITs ended the first quarter in the negative territory. Jadwa Al Haramain REIT and Taaleem REIT dropped 12 percent each. Aljazira REIT followed, falling 11 percent.